Suppose a young man marries at the age of twenty-three, and for the protection of his wife and the children that may bless their union, let us suppose he can carry only a one thousand dollar policy. What financial sacrifice will it cost him? This query addressed to an authority on life insurance brought forth the information that the best form of policy in this case is a Twenty payment life. This means that while the pol icy is payable only at death the payments are completed in twenty years.
Therefore, worked out theoretically, the young man would pay the annual premium, which at the age of twenty-three, is $29.10, up to and including his forty-second year. He will then own a paid-up policy (one on which no further payment is to be made).
But should he die before the twenty pay ments are made, his estate receives one thou sand dollars. As a matter of fact, however (and should he live), he will find that by the accumulation of dividends on his policy his payments will cease, not at the twentieth year, but about the sixteenth year.
This is an approximation, but it is nearly cor rect and his total cost, should he live to com plete the payments, would be as follows : 16 payments at $29.10 $ Completed payments add to his estate i,000.00 But his estate has gained in value this $1, coo the moment the first premium is paid. That is the essentially beneficial and practical side of life insurance.
Should a man attempt to add a house and lot to his estate, valuing them at $1,000, and having the privilege to pay off the purchase at the rate of $29.10 per year, it would take him about thirty-four years to accomplish it.
Did he die before the payments were com plete his estate would have no further claim in the property than the total of his payments.
And it would be difficult to recover that if for no other reason than that property values are uncertain and property cannot be closed out at a moment's notice. But in the event of a man's death his life insurance policy is worth its total face value and no litigation is neces sary to collect the money.
Here is a form of guaranteed protection without which no family dependent upon reg ular wages should fail to provide. To begin with, the day of death is uncertain; but a pol icy is certain even if a man should die five minutes after he takes it out.
While little has been done in an economic organization to protect and guarantee a wage earner's income, every possible device has been adopted to protect his life insurance policy.
Few men, whose limit is a one thousand dol lar straight life policy, could ever save that amount of money as a future protection to the family.
Many a conscientious man worries about the future of his loved ones because he is not "getting ahead." For a small amount of money expended annually he could do two very desirable things, ( 1 ) he could remove the worry that always results in decreasing a man's working efficiency, and (2) he could actually protect them.
The man who has taken out a life insurance policy solely for the protection of his family should hesitate a long time before he allows himself to avail of his privilege to borrow upon it. When he looks the matter squarely in the face, it must be clear to him that he is not borrowing from the insurance company, but from his wife and children A protective policy reaches out not only to a man's money but to his honor.